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Prepared by and Scott
Writing under the nom de plume of J.L. LORD

Monday | August 24, 2020

Hello Eizell.



YESTERDAY: August 21

The SPX marker on Friday felt heavy all day. It felt tired and as if it wanted to sell-off, with difficulties moving higher. The SPX closed higher by 11.65 points to close just under 3400 at 3397.16 (+0.32%). Obviously it is just conjecture, but I am pretty certain that the only reason the market didn't have a decent size drop was because AAPL climbed all day, sucking people into the market.

AAPL closed higher by 24.38 points (5.15%), and the whole world loves it again. Back in February when the stock was at $325, the whole world was selling it because of a lack of innovation. The low share price was about $212 made at the end of March. Now it is almost $500 because of the same lack of innovation. Yet, you can see below how the share prices in AAPL helped pull the SPX higher.

It was a slow day with airline stocks falling, banking stocks slightly lower/unchanged, and most other stocks mixed.


TODAY: August 24

TODAY – Strong again.

LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off – probably after the election (This one has been here for WEEKS. Nothing changed).

Higher. For those who have not been watching, the (strong) trend is higher, albeit by fractions of a percentage point every day.

It almost feels like we are at an impasse. The overall market is having a lot of trouble going higher, despite AAPL's daily run higher. AAPL was up 6% on Thursday and 5% on Friday; yet, the SPX was higher by only 0.3% - and only after struggles, and end of the day runs higher.

We are at all time highs, but part of the problem is that only 5 stock names (not 5%) are moving higher, while 95% are still struggling with the aftermath of covid on the economy. That is not healthy really, or it is a rally that can go a lot further once the other stocks start to be bought.


Sept 29 – Presidential debate #1
October 15 – Presidential debate #2
October 22 – Presidential debate #3

I am still standing by my prediction (made December 31, 2019) that we will be positive for the year and making new all-time highs by the end of the year. I maintained this stance even when the SPX was down -36% for the year (this has been here since January 1).

S&P 500 Price Limits

From 8:30 a.m. to 2:25 p.m. CST, there are successive price limits corresponding to 7%, 13%, and 20% declines below the previous trading day’s reference price.

From 2:25 p.m. until the 3:00 p.m. CST close of the cash equity market, only the 20% price limit will be applicable.

Average year with lots of intermittent volatility
(5.15% so far)

POT Logo

Last week was a technology challenge. The best firms out there were crashing. TOS was down on Monday and Tuesday. Wednesday night, Gmail and Skype were a mess. It also interfered with the recording of the POT class, cutting it in half. The recording for the second half of the class is now available – the BILLY BAROO REVIEW.



Up and Running for POT students (so far).

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